ab bank performance evaluation

8/12/2019 ab bank performance evaluation

1/51

1

Chapter-1: Introductory

1.0 Introduction:

In general sense we mean Bank as a financial institution that deals with money. There are

different types of banks like Central bank, State- owned Commercial bank, Private Commercial

bank or Merchant bank, Foreign Commercial bank, Specialized Development bank, etc. But

when we use the term bank it generally means commercial bank that collects the deposit from

surplus unit of the society and then lends the deposits to the deficit units of the society. But the

new thing is that how it operates and presenting its activities for the purpose of serving customer

requirements to increase their well-being in the sense of wealth. Banks also provide many

services for clients to make their life easy in this busy environment. In this competitive

environment in todays world, the entire bank increases their facilities in favor of their customers

to retain them and capture more share of the market to be leader. Interest is one of the main

factors in attracting customers. So, it can be said that conventional banking systems are interest-

based system. This report is an attempt to gain the knowledge of Overall Banking Activities of

ARAB BANGLADESH BANK Ltd. in terms of productivity and effectiveness. Also, analyze

and discuss the five years performance from fiscal year 2008- 2012 to evaluate the position of

ARAB BANGLADESH (AB) BANK Ltd.

1.1Origin of the report:

As a requirement for my Bachelor of Business Administration program I have prepared this

report on Performance evaluation of an commercial bankA Study on Arab Bangladesh

Bank Limited. During the project period, I am required to prepare a report on the organizationin my project period. My supervisor Professor Dr.Tanbir Ahmed Chowdhury, Dean and

Chairperson & Professor, Department of Business Administration, east west university- assigned

me this topic. It is a 03 (Three) credit hours program with duration of 12 weeks.


2/51


3/51

3

Secondary sources of data

Annual report of AB Bank Limited

Different papers of AB Bank Limited

Unpublished data

Different text books

Various files, balance sheet and various documents.

1.4.3 Data analysis and interpretation:

Collected information was processed by the use of computer system, research techniques etc. and

this detail analysis work is embodied in the report.

1.5 Limitations:

There are some problem regarding preparing this project.

Those problems are as follows:

Lack of availability of information and data, some time there are some back dated

information.

The record system of the annual report of some of the banks is not efficient.

Lack of access in many section of the bank financial Information.

Banking sector is a very vast sector where I have a little knowledge about it which

limits my report.

1.6 Structural Design:

This report structure design is based on Microsoft excel, Microsoft word, using graphs, charts

etcetera. The report structure is structuring by using the information from Annual report andcompany website.


4/51


5/51

5

the best satisfaction to their customers.

Their Shareholders:

they assure the best return to their shareholders' by commenced performance over a rolling year.

Their Team Members:

they provide secure, satisfying employment, ensuring the contribution of each individual to the

success of ABBL.

2.5 Organogram of AB Bank:

Every bank follow organogram of their own and they set up position into the organization based

on their organogram.

AB Bank also follow a organogram, AB Bank organogram is:

AB Bank follow and maintain the organogram between the Bank.


6/51

6

Chapter-3: Products and Services of AB Bank Limited

3.0 Product of a bank:

Every Bank offer some product to their customer and they try to offer various types of product

with various features so that they can attract the customer because a bank is always depend and

run on customer, if a bank can attract more customer by their product they can gain the better

position.

3.1 Product of AB Bank:

AB Bank also offer various product to do this thing, they offer product as Retail Banking, Max

saver, Deposit double scheme, Monthly saving deposit scheme, Millionaire scheme account,

Personal loan, Auto loan , Educational loan, Home loan and some other corporate banking which

are describe bellow.

3.2 Retail Banking:

Retail banking is one of the main product of AB Bank under retail banking they provide

3.2.0 Max Saver:

Itis one of the retail banking product its type is Savings account with maximum returns.

Features is--

Account will be limited for only individual.

Initial deposit of minimum Tk. 50,000.00.

No restriction on the number of transaction.

No interest forfeiting rules.

Free SMS banking & internet banking.

Interest will be calculated on daily balance and will be applied quarterly.

ATM transaction limit max Tk. 80,000.00 per day

Its rate of return is 0% to 9% if the deposit amount is less than Tk 50000 interest rate is 0%,

if the deposit amount is 5000000 or above they will pay the highest interest rate 9% and

between 50000 and 5000000 interest rate is varied 5% to 8% depends on the deposit amount.

In additional facility Customer will be privileged by following facilities upon maintaining

average balance of 50,000.00 and above (Free cheque book, Free Debit card, No ledger fee.)


7/51


8/51

8

3.2.4 Millionaire Scheme Account (MSA):

Features is --

Monthly installment based savings scheme with fixed maturity value of BDT. One

million (10,00,000).

Scope of initial investment to reduce monthly installment.

Installment size varies with tenor and initial investment.

Account can be opened for 3, 4, 5 or 6 years.

Rate of interest : 12.00%

Loan/overdraft facility may be allowed up to 90% of the deposited amount subject to

minimum BDT.15, 000.

3.2.5 Personal Loan:

purpose to serve Personal Loan may be availed for purchase of household items, marriage,

House/Office Renovation etc. Loan limit is minimum 50,000 and maximum 10,00,000( without

collateral). Charge for the lone is application fee tk 500 and Processing fee 1.5% on the approved

loan amount. Tenor of the loan is minimum 12 months and maximum 60 months. Rate of interest

charge for the loan is 18.00% p.a-21.00% p.a (to be determined by ALCO from time to time).

Guarantee of the loan is Spouse/parent guarantee, one personal guarantee.

3.2.6 Auto Loan:

Purpose is to serve to the customer to purchase of brand new car or purchase of reconditioned

car. The lone limit is 30% of the value for brand new car or reconditioned car but not exceeding

BDT 20,00,000.charge for the loan is Application fee Tk. 500 and Processing fee 1.5% on the

approved loan amount. Tenor is Brand New: 12-72 Months, Reconditioned car: 12-60 Months.

Interest have to pay 16.00%-19.00% p.a (to be determined by ALCO from time to time).

Guarantee of the loan is Personal guarantee of spouse/parents only.

3.2.7 Education Loan (disbursed to parents/guardian):

Purpose of the loan is To assist parents/guardians for Admission/Education fees, semester fees,

study abroad for their children/wards. Loan limit is Minimum Tk. 50,000,MaximumTk10,00,000


9/51

9

(without collateral),30% of the value of the total cost. Charge for the loan is Application fee Tk.

500,Processing fee 1.5% on the approved loan amount. Tenor is Min 12 Months, Max 60

Months. Rate of interest is 18.00% p.a - 21.00% p.a (to be determined by ALCO from time to

time). Guarantee is Personal guarantee of spouse/parents only.

3.2.8 Education Loan (for executive):

Purpose of the loan is To assist executives pursue Higher studies/professional qualification at

local/overseas institutions.. Loan limit is Minimum Tk. 50,000,MaximumTk10,00,000 (without

collateral),30% of the value of the total cost. Charge for the loan is Application fee Tk. 500,

Processing fee 1.5% on the approved loan amount. Tenor is Min 12 Months, Max 60 Months.

Rate of interest is 18.00% p.a - 21.00% p.a (to be determined by ALCO from time to time).

Guarantee is Personal guarantee of spouse/parents only.

( N.B: in the education loan(disbursed to parents/guardian) and (for executive) everything is

same accept the purpose of the loan. )

3.2.9 Home Loan:

This Loan is providing for multiple purposes, the purpose of the Loan is to 1. Purchase of

apartment/house within the Municipal areas of town/cities in Bangladesh. 2. Purchase of

Flat/Apartment/independent house not more than 15 years old. 3. Completion of construction of

a new house. 4. Loan takeover facility of Home Loan from other banks at a preferential rate.

Limit of the Loan is Min BDT 500,000 and Max70% of the value of the flat or construction cost

for completion but not more than Tk. 1,00,00,000. Charge for the loan is Application fee: Tk.

500 and Processing fee: 1.5% on the approved loan amount. Lone tenor is Min: 3 Years

Max: 15 Years. Insurance coverage under Property insurance for Earthquake and Fire. Rate ofinterest is 15.00% - 18.00% p.a (to be determined by ALCO from time to time). The purpose of

security is to Registered mortgage of property along with registered IGPA to sell the property.

Guarantee for the loan is Personal guarantee of spouse/parents / legal heir only.


10/51


11/51

11

Bank aim to provide tailored financing solutions with a dedicated team who can rapidly respond

to client needs.

Following are some of the products and financial tools of Corporate Banking:

Project Finance

Working Capital Finance

Trade Finance

Cash Management

Syndicated Finance, both onshore & off-shore

Equity Finance, both onshore & off-shore

Corporate Advisory Services

3.4 SME Banking (SME DEPOSIT/LOAN PRODUCTS):

Considering the volume, role and contribution of the SMEs, in the last three decades AB Bank

has been patronizing this sector by extending credit facilities of different types and tenor. As of

now around 30% of the banks total loan portfolio is segmented to the SMEs which deserve all

out attention in our plans, projections and forecasting.

As such the bank has emphasized on the following issues:

To provide the best services to the SME sector

To increase the SME portfolio of ABBL significantly

To improve the quality of ABBLs portfolio

SME Sectors in which AB Bank has participated so far:

Agro machinery

Poultry

Animal Feed

Dairy Product


12/51

12

Fruit Preservation

Hotel & Restaurants

Garments Accessories

Leather products Plastic product

Furniture : Wooden & Metal

Ink

Paint

Printing & Packaging

Wire & Cable

Aluminum

Cement and Lime Plaster

Clinics and Hospitals

Engineering & Scientific Instruments

3.5 Project finance (Large lone & project finance):

In order to cater the demand of client AB Bank has segmented its portfolio in terms of

loan size. As per this segmentation any loan over Tk. 10.00 Crore falls under the purview

of Large Loan Unit.

In AB Bank, there is also a separate Project Finance unit who evaluate the business. The

unit is entrusted to handle the portfolio in a focused manner. AB Bank is always in fore

front to support establishment of new projects of diverse nature which will help to

broaden the manufacturing arena vis--vis to generate to employment.

At the moment AB Bank s exposure in Large Loan & Project Finance portfolio is

distributed in the following sectors:


13/51

13

SL Sector ABBL Exposure(Limit)

(Fig. in Lac Tk.)

1 Agro- Business 12,717.562 Cement Power, Glass 38,691.92

3 Consumer Products 21,855.00

4 Edible Oil 36,057.53

5 Engineering & Construction 18,106.42

6 Financial Institution 1,414.70

7 Food & Beverage 27,044.24

8 Hotel 2,505.26

9 Health Care 3,928.6210 Printing & Packaging 11,867.61

11 Real Estate 10,451.49

12 Micro-finance 5,763.15

13 Export 9,441.63

14 RMG & Backward Linkage 94,826.13

15 Ship Breaking 18,029.20

16 Steel 42,824.97

17 Telecom & Computer Accessories 11,479.8918 Trading 77,579.89

Total( including syndicated exposure) 444,585.21

LessSyndicated Exposure 51,560.29

Total Large Loan & Project Finance portfolio without

syndicated exposure3930,24.92

3.6 Loan syndication:

Syndication or club financing is a growing concept in Banking Arena of Bangladesh.

Syndicated finance diversifies the risk of one bank on a single borrower and increases the

quality of loan through consensus or cumulative judgment and monitoring of different

banks / financial institutions.


14/51

14

AB Bank, the first bank in the private sector also took initiative to adapt to this growing

concept.

In 1997, AB Bank for the first time arranged a club financing with Dhaka Bank Ltd to

raise Tk. 6700 lac - out of which ABBL financed Tk. 5700 Lac and Dhaka bank financed

Tk. 1000 Lac.

In 1999, AB Bank arranged its second syndicated credit facility with IPDC to raise Tk

3563 Lac.

Since then AB Bank did not look back.

Since 1997 to 2007 (till date), AB Bank has raised total Tk. 25989.56 Lac as Lead

Arranger. The following banks from time to time have been our partners in these

syndications : Dhaka Bank, IPDC, EXIM Bank, Bank Asia, Oriental Bank, NCC Bank,

The City Bank, Trust Bank, Bank Asia.

AB Bank has also participated in different syndications arranged by other Banks, out of

which till date 6 (six) syndication has successfully been completed. AB Bank exposure in

these completed syndications was Tk. 4700 Lac.

At the moment AB has participation in 19 (nineteen) syndicated facilities. AB Banks

exposure in the ongoing syndication is Tk. 51560.29 Lac which is diversified in the

following ten sectors:

SL Sector ABBL Participation(Fig. in Lac Tk.)

1 Textile 9,533.57

2 Micro-finance 3,000.00

3 Cement 7,990.00

4 Energy & Power 11,997.00

5 Telephone (PSTN) 5,500.00

6 Glass 900.00

7 Sugar 900.00


15/51

15

8 Steel Mills 9081.72

9 Paper 1158.00

10 Chemical 1,500.00

Total 51,560.29

3.7 landing Rate:

ProductsMid Rate

(Previous)Mid Rate

Interest rate

w.e.f January

01, 2013

1) Agriculture(As per Bangladesh Bank

Directives)13.00% 13.00% 13.00%

2) Export(As per Bangladesh BankDirectives)

7.00% 7.00% 7.00%

3) Large and medium scale industries

(Term)14.00% 14.00% 12.50%-15.50%

4) Small Industries (Term Loan) 16.50% 15.50% 14.00%-17.00%

5) Working Capital

a) Large and medium scale industries 14.00% 14.00% 12.50%-15.50%

b) Small Industries 16.50% 16.50% 14.00%-17.00%

6) Commercial Lending

a) Large and medium scale industries 15.50% 15.50% 14.00%-17.00%

b) Small Industries 16.50% 16.00% 14.50%-17.50%

7) Housing Loans 16.50% 16.00% 14.50%-17.50%

8) Consumer Credit 19.50% 19.50% 18.00%-21.00%

9) Credit Card 2.00% per month 2.00% per month 2.00% per month

10) Finance to NBFI's 16.50% 16.50% 15.00%-18.00%

11) Others

i) Cash collateral-ABBL FDR (Maximum

80.00%)16.50% 16.50% 15.00%-18.00%

ii) Cash Collateral - Other Banks FDR or

WDB16.75% 16.75% 15.25%-18.25%

iii) Women Enterpreneur upto Tk 50.00 10.00% 10.00% 10.00%


16/51

16

lac (As per Bangladesh Bank Directives)

iv) Special Scheme Loans - SME 16.50% 16.50% 15.00%-18.00%

v) Import Finance (Rice, Wheet, Edible

Oil, Lentils, Peas, Onion, Dates, Sugerand Chemical Fertilizer)

14.00% 14.00% 12.50%-15.50%

vi) Auto Loan 17.50% 17.50% 16.00%-19.00%

Notes:

1. For lending against ABBL FDR, the rate is minimum 3.00% above the rate of the

instrument.

2. Exposure under cash collateral of other banks requires clearance from FI & Treasury.

3.

For taking exposure on "Digun Loan" under Special Scheme, the rate will be 8% above

the instruments' rate; subject to maximum 20% p.a.

4. For Women Entrepreneur (above Tk. 50.00 lac), the rate will be 15.00%-18.00%.

3.8 Deposit Rate:

Interest Rate on Deposit w.e.f. Close of Business March 4, 2014

Products Interest Rate

Savings Deposits 6.00%

FSP (Family Savings Plan) 8.00%

SND (Special Notice Deposit)

Upto 1,00,00,000 4.00%

1,00,00,001 to 25,00,00,000 5.00%

25,00,00,001 to 50,00,00,000 6.00%

50,00,00,001 to 100,00,00,000 7.00%

Above 100,00,00,000 8.00%

Security Deposit Receipts(SDR)/Call Deposit 3.00%

NFCD Rate as per Daily FX rate


17/51

17

FC & RFCD(Minimum balance USD 1000 orGBP 500 or its equivalent for other currency &

minimum tenor one month)

Rate as per Daily FX rate

Fixed Deposit (Time Deposits)1 (One) Month 7.00%

3 (Three) Months

Below 10 Crore 10.25%

10 Crore & Above 10.50%

6 (Six) Months

Below 10 Crore 11.00%


1 (One) YearBelow 10 Crore 11.25%


2 (Two) Years 11.50%

3.9 Non-Resident Bangladeshi (NRB) Banking:

Facilities offered to NRBs

Opening of Foreign Currency A/C:We open Foreign Currency Account in USD/GBP/EUR for

NRBs. Foreign Currency can be remitted by the Nationals of Bangladesh living Abroad earned

by them as wage earners or from other sources. The deposit amount can also be used for

remittance to other countries as per their requirement. Nominee of Account holder can also able

to operate this Account.

NFCD: We issued Foreign Currency Fixed Term Deposit in USD/GBP/EUR with different

tenure. Interest is paid in respective Foreign Currency. Rates of Interest are published in our

daily Exchange Rate.


18/51

18

Wage Earners Development Bond:These Bonds can be issued from the balance of the FC

account with tenure for five years. Rate of interest is 11.80% p.a. in BDT.

USD Premium Bond:These Bonds can be issued from the balance of the FC account with a

tenure for Three years. Rate of interest is 7.5% p.a. in BDT.

USD Investment Bond:These Bonds can be issued from the balance of the FC account with a

tenure for Three years. Rate of interest is 6.5% p.a. in USD.

In addition to the above, we also have Drawing Arrangements with 20 (Twenty)

Exchange/Money Transfer Remittance Houses all over the globe to facilitate fast, reliable and

hassle-free inward remittance to the expatriate Bangladeshis around the world.

L ist of Exchange / Money Transfer Remittance Houses are as fol lows:

1.Zenj Exchange Co. P.O. Box 236,Manama,Kingdom of Bahrain. 2.Oman Exchange Company

Ltd. W.L.L, Post Box # 26057, 13211 Safat, Kuwait. 3.Security Exchange Co. WLL, Post Box #

29760, Safat, Kuwait. 4.International Financial Line, P.O Box 2171, Safat, Kuwait.5. Bank AlBilad, PO Box 140, Riyadh, KSA, Tel: +966-011-4798888. 6.Modern Exchange Co. LLC, Post

Box # 3401 PC 112, Ruwi, Sultanate of Oman. 7. Oman United Exchange Co. L.L.C , Near

Ruwi Police Station, P.O. Box 889, Muscat, Postal Code 100, Sultanate of Oman. 8. Majan

Exchange L. L.c, C R. NO. 104446, P.O. BOX No. 583 , Postal Code 117, Sultanate of Oman. 9.

Habib Exchange Co. LLC, Central Office, Sheikh hamdan street, P.O Box-2370, Abu Dhabi,

U.A.E. 10.Al-Fardan Exchange Co. LLC, Post Pox # 339, Mushrib Street, Doha, Qatar. 11.Gulf

Overseas Exchange Co. L.L.C, P.O. Box No. 3931, Ruwi 112, Sultanate of Oman. 12.U.A.E.

Exchange Centre LLC, Post Box # 170, Sh. Hamdan Street, Abu Dhabi United Arab Emirates.

13.Al-Ansari Exchange Co, Head Office , Amin Tower , Liwa Street, Post box-325, Abu Dhabi,

U.A.E. 14. Habib Qatar International Finance & Investment Ltd, Post Box # 1188, Mushirib

Street, Doha, Qatar. 15. MoneyGram Payment Systems Inc, 1550 Utica Avenue South,

Minneapolish, MN 55416, USA. 16. Emirates India International Exchange, P. O Box 7190,


19/51

19

Dubai, United Arab Emirates. 17.Wall Street Exchange Centre LLC, 1103,1104-Twin Towers,

Baniyans Road, P.O. Box 3014, Dubai, U.A.E. 18. Continental Exchange Solutions, (Ria

Financial Services), 13825 Cerritos Corporate Drive Suite C'' Cerritos, California, USA. 19.Al

Zaman Exchange WLL, P O Box: 23497, Souq Najada Doha, Qatar. 20.Brac Saajan Exchange

ltd, 147 Lozells Road, Birmingham, West Midlands, B19 2TP, United Kingdom, Tel: +44

(121)515 4008.

3.10 Money Transfer:

Foreign Remittance through Exchange House For Inward Remittance, AB Bank established

extensive drawing arrangement network with Banks and Exchange Companies located in the

important countries of the world. AB have Drawing Arrangements with 20 (Twenty)

Exchange/Money Transfer Remittance Houses all over the global.

3.11 Islami Banking:

To provide the Islamic banking services in accordance with the principles of Islamic Shariah, AB

Bank has established Islamic Banking Wing and started its functioning by opening full-fledged

Islamic banking branch on 23.12.2004. The branch is known as AB Bank Islami BankingBranch, Kakrail, and is situated at 82, Kakrail, Ramna, Dhaka.

The goals and objectives of Islamic banking Wing are as under:

To facilitate the Islamic banking system in the country

To create new entrepreneurs and to arrange required finance for them

To play effective role for socio economic development of the country

To give assistance in launching welfare oriented economic system under Islamic values

Under this wing AB Bank extends the following Islamic banking services:

Deposit services

Investment services


20/51

20

3.12 AB Securities Limited (ABSL):

AB Securities Limited (ABSL), a wholly owned subsidiary of AB Bank Limited, provides

stock broking services to its clients. ABSL originally incorporated in December 2009 as a private

limited company, commenced operations in August, 2010, following the transfer of the

brokerage business of Arab Bangladesh Bank Foundation (ABBF) to ABSL in August, 2010, in

according with the instruction of Bangladesh Bank. ABSL is a corporate member of both Dhaka

Stock Exchange Limited (Member # 201) and Chittagong Stock Exchange Limited (Member #

101).

3.13 AB Investment Limited (ABIL):

AB Investment Limited, a subsidiary of AB Bank Limited incorporated under the Companies

Act 1994 and running its Merchant Banking operations being licensed by the Securities and

Exchange Commission.

ABIL provides diversified services for the investors and sponsors group of the Capital Market.

The offered services are:

1. Portfolio Management Services.

2. Investors' Discretionary Account (IDA) for Local Individual and Corporate Investors.

3. Managements' Discretionary Account (MDA) for Non-Resident Bangladeshi, Foreign, local

persons and Corporate Investors.

4. Investors' Discretionary Account (NRB-IDA) for Non-Resident Bangladeshi, Foreign

Individual and Corporate Investors.

5. Opening and Maintaining of FC Account with AD Branches of AB Bank Limited (for Non-

Resident Bangladeshi and Corporate Investors).

6. Issue Management Services.

7. Private Placement.

8. Corporate Advisory.

9. Underwriting.
http://abbl.com/abil-portfolio-management.htmlhttp://abbl.com/abil-portfolio-management.html#IDAhttp://abbl.com/abil-portfolio-management.html#MDAhttp://abbl.com/abil-portfolio-management.html#NRB-IDAhttp://abbl.com/abil-fc-account-open.htmlhttp://abbl.com/abil-other-services.htmlhttp://abbl.com/abil-other-services.htmlhttp://abbl.com/abil-other-services.htmlhttp://abbl.com/abil-other-services.htmlhttp://abbl.com/abil-other-services.htmlhttp://abbl.com/abil-other-services.htmlhttp://abbl.com/abil-other-services.htmlhttp://abbl.com/abil-other-services.htmlhttp://abbl.com/abil-fc-account-open.htmlhttp://abbl.com/abil-portfolio-management.html#NRB-IDAhttp://abbl.com/abil-portfolio-management.html#MDAhttp://abbl.com/abil-portfolio-management.html#IDAhttp://abbl.com/abil-portfolio-management.html


21/51

21

3.14 Cards:

AB Bank Ltd. introduces VISA debit card facility. Under this System card holder can reload and

refunded money from Banks designated Branches Card holder also can pay utility Bills and

purchase goods from different POS (point of sale).Bank has also joined Electro ways

Transactions Network (ETN) commonly known as E-cash, recently. This new platform will

enable the Card Division to go for mass-based card programs in the future.

3.15 Services of AB Bank:

AB Bank provide various services to their customer, they try to satisfy their customer by the

services so that customer becomes loyal to Bank. The bank provide individual and joint service,bank also provide some extra beneficial service like mobile banking.

3.16 Self Deposit Locker:

This services provide for those customer who Looking for a safe storage place for their

valuables. A Safe Deposit Locker with AB Bank is the solution to customer concern. Located at

select branches in cities all over the country, Banks lockers ensure the safe keeping of customers

valuables. Advantage of the locker is wide availability with various size(small, medium & large)

with varying rents and minimum rent period is one year, rent must pay in advanced from accounteligibility for the service is An individual (not minor), firms, limited company, associations,

clubs, trusts, societies, etc. for getting the locker services customer have to maintain and fulfill

some terms and conditions. Only some specific branches provide the facility.

3.17 Mobile Banking/SMS Banking:

For getting the service customer have to register their mobile number and follow the bank

procedure, first of all bank register the number after that customer getting the services. By using

the service customer can facilitate themselves by inquiring their balance, fund transfer, mini

statement, mobile top UP, mobile bill payment etc. if any customer taking any facilities from

these bank ensure there transaction by giving feedback sms.


22/51

22

3.18 New MICR Cheque Book:

AB Bank has started Issuance of new cheque book from June 01, 2009 as per Bangladesh Bank

guideline. Customer can conveniently collect new cheque book from their Account Opening

Officer of the branch. As per Bangladesh Bank instruction bank have implemented MICR coded

cheque book from June 6, 2009, which will be customized by the Bank. MICR is a process of

printing cheques using magnetic ink and special fonts to create machine-readable information.It

is the first step towards electronic cheque clearing process. the MICR coded cheque book will

facilitate to 1. Quick processing and faster cheque clearing time 2. Prevent cheque related

fraudulent activities.

3.19 Lost Cheque Book:

Service provide for lost cheque book is in case of issuance of duplicate cheque book in lieu of

lost cheque book the Account Holder will have to submit the Bank an Application in the

prescribed preform with a copy of GD entry from local police station regarding the loss of his

cheque book. If account holder provide those valid information bank will provide new cheque

book immediately.

3.20 Lost Credit/Debit card:

To recover the lost credit/debit card customer simply call AB Bank Ltd, Card Division. Then

report the loss in writing to AB Bank Card Division or his/her Branch where he/she opened

his/her account within 24 hours and a replacement will be ready for the customer within 7

working days.

3.21 Fund Transfer:

AB Bank provide the service of fund transfer any customer can transfer his fund to another

account through his request letter or his use AB cheque with cash deposit slip wherein he clearly

mentioned beneficiary Account Number & Name of the customer.


23/51

23

3.22 Account Opening:

Anyone can open account in AB Bank but he/she has to maintain the bank procedures and

provide some information to the bank,for open a account customer have to fill up the account

opening form and provide two copies attested passport size photograph and a valid identification

card ( it might be photocopy of passport/national ID card/Driving license etc.).

3.23 Address Change:

Customer can change the address if they want customer can fill up banks prescribed address

change form (available any of our branches) or he/she can send to bank in writing change of

address with a copy of utility bill documents showing his/her new address. instruction should besubmitted to the Branch of AB Bank Limited where he/she opened your account.


24/51

24

Chapter-4: Performance Evaluation of AB Bank Limited

4.1 Deposit Growth Rate:

Money placed into a banking institution for safekeeping. Bank deposits are made to deposit

accounts at a banking institution, such as savings accounts. The account holder has the right to

withdraw any deposited funds, as set forth in the terms and conditions of the account. The

"deposit" itself is a liability owed by the bank to the depositor and refers to this liability rather

than to the actual funds that are deposited.

Table 1: Deposit Growth Rate

Year Amount Growth Rate

2007 53375000000

2008 68560000000 28%

2009 83087000000 21%

2010 95702000000 15%

2011 116152000000 21%

2012 140026000000 21%

Source : Annual Report of AB Bank (2008-2012)

Graph 1: Deposit Growth Rate

When someone opens a bank account and makes a deposit to the bank, the cash becomes an asset

of the bank; the account becomes a liability. AB Bank has the highest deposit growth rate in

2008 which is 28% in that year.

2008 2009 2010 2011 2012

Deposit Growth Rate 28% 21% 15% 21% 21%

0%

10%

20%

30%

Deposit Growth Rate


25/51

25

4.2 Loan To Deposit:

The formula for the loan to deposit ratio is exactly as its name implies, loans divided by deposits.

The loan to deposit ratio is used to calculate a lending institution's ability to cover withdrawalsmade by its customers.

Table 2: Loan to Deposit

Year Deposit Loan (loan & advance) Ratio

2008 68560000000 56709000000 83%

2009 83087000000 70880000000 85%

2010 95702000000 88002000000 92%

2011 116152000000 94638000000 81%

2012 140026000000 106066000000 76%Source : Annual Report of AB Bank (2008-2012)

Graph 2: Loan to Deposit Ratio

Loans in the numerator of the formula are investments or assets for a bank. Deposits in thedenominator of the formula can be considered the same as debt as the individual depositors are

essentially granting monies to the bank with a return equal to the deposit rates and that can be

called upon at any time. In these respects, the loan to deposit ratio is similar to a liquidity ratio

and debt ratio. Here we have seen in year 2010 AB Bank has a height Deposit ratio that is 92%.

0%

50%

100%

20082009

20102011

2012

2008 2009 2010 2011 2012

Loan to Deposit 83% 85% 92% 81% 76%

Loan to Deposit Ratio


26/51

26

4.3 Return on Asset:

A profitability measure that indicates how well a Bank uses its capital resources to generate

income. To calculate return on assets, divide the Banks total income by the value of its total

assets. The resulting figure, multiplied by 100, will be a percentage; the higher the percentage,

the more efficiently the Bank uses its assets.

Table 3: Return on asset

Year Net Income Average Total Assets Ratio

2008 2301000000 73802000000 3.12%

2009 3363000000 95483000000 3.52%

2010 3696000000 119801500000 3.08%

2011 1328000000 142827000000 0.93%

2012 1439000000 163402500000 0.88%


Graph 3: Return on Asset Ratio

In 2009, this bank has a highest Return on Asset that is 3.52%.The return on assets ratio can be

helpful in comparing the profitability of different-sized Banks because it allows investors to see

how efficiently a Bank works with what it has, regardless of how big the Bank is. If a Bank has

30 million in net income and 100 million in total assets, its return on assets would be 30%.

Return on assets is calculated by dividing a company's net income usually annual income by its

total assets, and is displayed as a percentage.

0.0000%

1.0000%

2.0000%

3.0000%

4.0000%

2008 2009 2010 2011 2012

2008

2009

2010

2011

2012


27/51

27

4.4 Return on Equity Ratio:

The amount of net income returned as a percentage of shareholders equity. Return on equity

measures a corporation's profitability by revealing how much profit a Bank generates with the

money shareholders have invested.

Table 4: Return on Equity Ratio

Year Net Income Average Stock holders Equity Ratio

2008 2301000000 5617500000 40.96%

2009 3363000000 8440500000 39.84%

2010 3696000000 12012500000 30.77%

2011 1328000000 14360000000 9.25%

2012 1439000000 20443500000 7.03%


Graph 4: Return on Equity Ratio

This ratio indicates how profitable a Bank is by comparing its net income to its average

shareholders' equity. The return on equity ratio(ROE) measures how much the shareholders

earned for their investment in the Bank. The higher the ratio percentage, the more efficientmanagement is in utilizing its equity base and the better return is to investors. In 2008, AB Bank

has a highest Return on Equity that is 40.96%.

0.0000%

10.0000%

20.0000%

30.0000%

40.0000%

50.0000%

2008 2009 2010 2011 2012

Return on Equity Ratio

20082009

2010

2011

2012
http://www.investopedia.com/terms/r/returnonequity.asphttp://www.investopedia.com/terms/r/returnonequity.asphttp://www.investopedia.com/terms/r/returnonequity.asp


28/51


29/51

29

4.6 Growth of Investment:

Investment has been initially recognized at cost, including acquisition charges associated with

the investment. Premiums have been amortized and discount accredited, using the effective or

historical yield method.

Table 6: Growth of I nvestment

Year Loan Growth Rate

2008 56709000000

2009 70880000000 24.98%

2010 88002000000 24.15%

2011 94638000000 7.54%

2012 106066000000 12.07%

Source: Annual Report of AB Bank (2008-2012)

Graph 6: Growth of Investment

We see in the invest growth ratio AB Bank investment was reducing year to year, in 2009 we seethey had the highest investment which is 24.98%, bank also invest similar amount in 2010 but in

2011 they invest very small amount 7.54% which is so much narrow investment between 2009-

2012.

0.0000%

10.0000%

20.0000%

30.0000%

2009 2010 2011 2012

Growth of Investment

2009

2010

2011

2012


30/51

30

4.7 Equity Multiplier:

The equity multiplier is a way of examining how a Bank uses debt to finance its assets. Also

known as the financial leverage ratio or leverage ratio.

Table 7: Equity Multi plier

Year Total Asset Stock holders Equity Times

2008 84054000000.00 6723000000.00 12.50

2009 106912000000.00 10158000000.00 10.52

2010 132691000000.00 13867000000.00 9.56

2011 152963000000.00 14853000000.00 10.29

2012 173842000000.00 26034000000.00 6.67


Graph 7: Equity Multiplier

This ratio shows a Bank's total assets per Taka of stockholders' equity. A higher equity multiplier

indicates higher financial leverage, which means the Bank is relying more on debt to finance its

assets. The height multiplier is 12.50 times in 2009 of AB Bank which means higher financial

leverage in that year. This Bank equity multiplier of 2009 and 2011 are quit equal to 2008.

0

5

10

15

2008 2009 2010 2011 2012

Equity Multiplier

2008

2009

2010

2011

2012


31/51

31

4.8 Price Earnings Ratio:

Price Earnings Ratiocompares with current share price and its per-share earnings. In general, a

high Price earning suggests that investors are expecting higher earnings growth in the future

compared to Banks with a lower Price earning. However, the Price earnings ratio doesn't tell us

the whole story by itself. It's usually more useful to compare the Price earnings ratios of one

Bank to other Banks in the same industry, to the market in general or against the Bank 's own

historical Price earning.

Table 8: Pr ice Earnings Ratio

Year Market Price of Common Stock Per

Share

Earnings Per Share Price Earnings

Ratio

2008 82 5.2 15.76

2009 118 7.6 15.52

2010 158 8.36 18.89

2011 68 3 22.66

2012 34 3.25 10.46


Graph 8: Price Earnings Ratio

The Price earnings is sometimes referred to as the "multiple", because it shows how much

investors are willing to pay per Taka of earnings. If a Banks were currently trading at a multiple

(Price earnings) of 20, the interpretation is that an investor is willing to pay Taka 20 for Taka 1

of current earnings. It is important that investors note an important problem that arises with the

Price earnings measure, and to avoid basing a decision on this measure alone. The earningss is

based on an accounting measure of earnings that is susceptible to forms of manipulation, making

0

5

10

15

20

25

2008 2009 2010 2011 2012

Price Earning Ratio

2008

2009

2010

2011

2012


32/51

32

the quality of the Price earnings only as good as the quality of the underlying earnings number.

AB Bank height price earnings ratio is 22.66 in 2011 among last 5 years.

4.9 Net Income Growth Rate:

Net income is calculated by taking revenues and adjusting for the cost of doing business,

depreciation, interest, taxes and other expenses. This number is found on a Bank's income

statement and is an important measure of how profitable the Bank is over a period of time.

Table 9: Net I ncome Growth Rate

Year Amount Growth Rate

2008 2301000000

2009 3363000000 0.461538462

2010 3696000000 0.0990187332011 1328000000 -0.640692641

2012 1439000000 0.083584337


Graph 9: Net Income Growth Rate

Net income is calculated by starting with a Bank's total revenue. From this, the cost of sales,

along with any other expenses that the Bank incurred during the period, is removed to reach

earnings before tax. Tax is deducted from this amount to reach the net income number. Net

income is susceptible to manipulation through such things as aggressive revenue recognition or

by hiding expenses. When basing an investment decision on net income numbers, it is important

to review the quality of the numbers that were used to arrive at this value. Here we have seen that

the height growth of net income of the AB Bank in 2009 that was .46 and in 2011 it was

negative.

-1

-0.5

0

0.5

2008 2009 2010 2011 2012

Net Income Growth Rate

2008

2009

2010

2011

2012


33/51

33

4.10 Interest Coverage Ratio:

A ratio used to determine how easily a Bank can pay interest on outstanding debt. The interest

coverage ratio is calculated by dividing a Banks earnings before interest and taxes (EBIT) of

one period by the Banks interest expenses of the same period.

Table 10: I nterest Coverage Ratio

Year EBIT Interest Expense Ratio

2008 4298000000 697000000 6.16

2009 5802000000 597000000 9.71

2010 7409000000 1052000000 7.04

2011 4312000000 1355000000 3.18

2012 4363000000 1173000000 3.72


Graph 10: Interest Coverage Ratio

The lower the ratio, the more the Bank is burdened by debt expense. When a Banks interest

coverage ratio is 1.5 or lower, its ability to meet interest expenses may be questionable. An

interest coverage ratio below 1 indicates the Bank is not generating sufficient revenues to satisfy

interest expenses but between 2008-2012 AB Bank interest coverage ratio never been comesbelow 3.5.

0

2

4

6

8

10

2008 2009 2010 2011 2012

Interest Coverage Ratio

2008

20092010

2011

2012


34/51

34

4.11 Net Interest Margin:

A performance metric examines how successful a Bank's investment decisions are compared to

its debt situations. A negative value denotes that the Bank did not make an optimal decision,

because interest expenses were greater than the amount of returns generated by investments.

Table 11: Net I nterest M argin

Year Net Interest Margin Average Earning Assets Ratio

2008 2034000000 58894000000 3.45%

2009 2908000000 77674000000 3.74%

2010 3481000000 98610500000 3.53%

2011 2394000000 117751000000 2.03%

2012 3123000000 134608000000 2.32%


Graph 11: Net Interest Margin

For example, AB Bank has a return on investment of Taka 10,00,000, an interest expense of

Taka 20,00,000 and average earning assets of Taka 1,0000,000. AB Bank net interest margin

would be -10%. This would mean that AB Bank has lost more money due to interest expenses

than was earned from investments. In this case, AB Bank would have been better off if it had

used the investment funds to pay off debts instead to making an investment, but AB Bank

interest margin is always positive in 5 years.

0.0000%

1.0000%

2.0000%

3.0000%

4.0000%

2008 2009 2010 2011 2012

Net Interest Margin

2008

2009

2010

2011

2012


35/51


36/51

36

4.13 Authorized Capital Growth Rate:

The bank authorized capital in 2003 is Tk.800 million and as on 31stDecember 2008 authorized

capital stood at Tk. 3000 million. At the end of 2012 authorized capital stood at 6000 million, I

believe this bank has ability to increase it further.

Table 13: Author ized Capital Growth Rate

year Authorized capital growth rate

2007 2000000000

2008 3000000000 50.00%

2009 6000000000 100.00%

2010 6000000000 0.00%

2011 6000000000 0.00%2012 6000000000 0.00%


Graph 13: Authorized Capital Growth Rate

According to the scenario we have seen AB Bank Limited has a height growth in 2009, which is

100%. It showed this Bank has moved with our economic growth. If we look back to 2009-2010

and 2010- 2011 fiscal years, where our economy had experienced pace in its all indicators. Thatwas good news for our economy. Another thing is investors invest in a Bank that time, when

they saw Bank is well managed by the board.

0.00%

50.00%

100.00%

150.00%

2008 2009 2010 2011 2012

Authorized Capital Growth Rate

Authorized capital


37/51

37

4.14 Paid up Capital Growth Rate:

The bank Paid up capital in 2003 is Tk.472 million and as on 31stDecember 2008 Paid up capital

stood at Tk.2230 million. At the end of 2012 Paid up capital stood at 4423 million. Every year

AB Bank increase their paid up capital amount consecutively.

Table 14: Paid up Capital Gr owth Rate

year Paid up capital growth rate

2007 743000000

2008 2230000000 200.13%

2009 2564000000 14.98%

2010 3205000000 25.00%

2011 3686000000 15.01%

2012 4423000000 19.99%


Graph 14: Paid up Capital Growth Rate

Paid up capital shows the total price of the share outstanding in the market. Here we have seen

this Bank has the height growth in 2008 which is 200.13%. A growth in paid up capital is

happened by two events. First one is trust among the individual investors and second one is abetter situation in stock market. If we looked bank to the stock market situation in 2008-2009

fiscal year, almost all Bank stocks gained near about four times in price that means individual

investors had 200% capital gain in all stocks.

0.00%

50.00%

100.00%

150.00%

200.00%

250.00%

2008 2009 2010 2011 2012

Paid up Capital Growth Rate

Paid up capital growth rate


38/51

38

4.15 Employment Generation:

Each year AB Bank has gradually increased their number of employee, here the scenario given.

Table 15: Employment Generati on

year Number of Employees employment generation

2007 1725

2008 1804 79

2009 1952 148

2010 2008 56

2011 2096 88

2012 2070 -26


Graph 15: Employment Generation

A good economic situation, where nominal inflation rate ensure investors not to lose their

investments, which ensures better employment generation. In 2009 AB Bank generate 148

vacancy for their vacant position. According to managerial body, employment generation is fully

dependent with economical growth and there has some rules to increase number of branches too.

In 2012 the Bank sac 26 employees also.

-50

0

50

100

150

200

2008 2009 2010 2011 2012

Employment Generation

employment generation


39/51

39

4.16 New Branch Opened:

For business growth, each bank needs to setup new branches and upgrading their existing

branches by adding different customized product and services. Given data show the number

branches increased by AB Bank each year.

Table 16: New Br anch Opened

year Number of Branches New Branch opened

2007 72

2008 73 1

2009 78 5

2010 82 4

2011 86 4

2012 87 1


Graph 16: New Branch Opened

This scenario is also depending on economic growth and policies of Bangladesh Bank. When a

Bank has a growth in investment deposit and customer satisfaction. A growth in market economy

that means growth in socio economy encouraged, a Bank to open new branches in remote areas.

Here we have found in 2009 they opened height 5 branches in different areas and in 2010 and2011 Bank opened 4 branches in every year.

0

2

4

6

2008 2009 2010 2011 2012

New Branch Opened

New Branch opened


40/51

40

4.17 Investment (General):

Amount of invest of a financial institution reflects how efficiently they can handle their deposits,

here data are given and these shows each year investment of AB Bank.

Table 17: I nvestment ( general )

Year Investment in share &

securitiesGrowth Rate

2007 8885000000

2008 11396000000 28.26%

2009 16369000000 43.64%

2010 14563000000 -11.03%

2011 21556000000 48.02%

2012 26115000000 21.15%


Graph 17: Investment In Shares & Securities Growth Rate

When a Bank sells or provide loan upon their collected deposits in more widely known as

investment in banking. Invest is the major area of earnings for a Bank. All other factors of a

annual financial report are depend on their specific term. Find out investors and provide lone

those activities are not the end of the task it is actually the beginning of their task. Here Bank

need advice, look after and manage the fund they had provided. Otherwise there have good

chance to lose their investment as bad debt. Here we have seen in 2011, this bank has a highest

investment growth of 48.02%. in 2010 their investment goes in negative which is -11.03.

Investment data are also reflecting some external factors like stable economical environment,

economical growth, political situations etc.

-20.00%

0.00%

20.00%

40.00%

60.00%

2008 2009 2010 2011 2012

Investment in Share & Securities Growth

Rate

Investment in share &

securities Growth Rate


41/51


42/51

42

4.19 Import Business:

Extensive global network and bunch of trade specialists of AB Bank offers a wide range of

import services and ensure that business is handled efficiently and without delay. Letter of credit

is an inseparable thing in both export and import, AB Bank ensure the customer to do it well.

Table 19: Import Business

Year Import Business Growth Rate

2007 48441000000

2008 70041000000 44.59%

2009 65956000000 -5.83%

2010 9751000000 -85.22%

2011 79463000000 714.92%

2012 100373000000 26.31%


Graph 19: Import Business

Import business or business of opening LC is a type of business which is mainly depends on

domestic demands of foreign goods and commodities. At the beginning of foreign business we

have seen in 2011, AB bank made highest growth in remittance but this bank paid highest in

same year for import. That means in that specific year our macro economy was in the best

condition. It also means all other economic indicators were good position among last five years.

If we keep close eyes on our economy which is mainly depends on agriculture and garments

(RMG). In these two types of production commodities are also depends on import. For example

if we choose agriculture fertilizer fuel and all other factors we need to import from outside of our

country. Here we can see Bank has negative import growth rate in 2009 and 2010 in this period

our economy face trouble.

-500.00%

0.00%

500.00%

1000.00%

2008 2009 2010 2011 2012

Import Business

Import Business


43/51

43

4.20 Export Business:

AB Bank helps to reduce the risks of delay or non-payment when customers undertake

international trade so they can focus on expanding their export business. Letter of credit is an

inseparable thing in both export and import, AB Bank ensure the customer to do it well.

Table 20: Export Business

Year Export Business Growth Rate

2007 20677000000

2008 28937000000 39.95%

2009 30640000000 5.89%

2010 41686000000 36.05%

2011 57592000000 38.16%

2012 65782000000 14.22%


Graph 20: Export Business

When production exceeds domestic demands the surplus product could be sold out the some

other countries where demands for those products have. In 2008, this bank produces highest

number of foreign currency earnings from export. 39.95% growth in single indicator is a brilliant

achievement for a bank where external factors are highly correlated. In Bangladesh RMG is the

main export item, along with this we export jute items, leather items and so on.

0.00%

10.00%

20.00%

30.00%

40.00%

50.00%

2008 2009 2010 2011 2012

Export Business

Export Business


44/51

44

4.21 Remittance Growth Rate:

Remittance is the source of money for a country comes from foreign. It is the lifeline of

Bangladesh economy, have been buoyed large number of Bangladeshi workers who moving

abroad over the past year and our remittance significantly growth over the time.

Table 21: Remittance Growth Rate

year Remittance Growth Rate

2007 156000000

2008 164000000 5.13%

2009 182000000 10.98%

2010 210000000 15.38%

2011 250000000 19.05%

2012 217000000 -13.20%


Graph 21: Remittance Growth Rate

Remittance word reflects the foreign currency earnings by Bangladeshi people in outside of our

territory. Here main source of foreign currency is Middle East. According to the data AB Bank

has a height growth of 19.05% in remittance in 2011. This statistics make as a bit confusedbecause as we know in 2010-2011 Bangladesh experienced a massive slowdown in their

economy and for that Bank remittances growth is negative in 2012 is -13.20% after that there is a

statistics shown here is a reflection of increases of number of branches in remote area and open

up more new account by the nonresident Bangladeshi.

-20.00%

-10.00%

0.00%

10.00%

20.00%30.00%

2008 2009 2010 2011 2012

Remittance Growth Rate

Remittance Growth Rate


45/51

45

4.22 Operating Profit Growth Rate:

The profit earned from a Bank's normal core business operations. This value does not include

any profit earned from the Banks investments, such as earnings from Banks in which the Bank

has partial interest) and the effects of interest and taxes.

Table 22: Operating Profi t Growth Rate

Year Operating Profit Growth Rate

2007 3325000000

2008 4298000000 29.26%

2009 5802000000 34.99%

20107409000000 27.70%

2011 4312000000 -41.80%

2012 4363000000 1.18%


Graph 22: Operating Profit Growth Rate

Operating profit is a calculation that shows amount of profits that were not deducted by interest,

tax and retain earning. This is a connection and reflector of companys earnings before intere st

and tax payment. In 2009 AB Bank has a height growth that is 34.99% and in 2011 Bank has

negative growth that is -41.80%.

-60.00%

-40.00%

-20.00%

0.00%

20.00%

40.00%

2008 2009 2010 2011 2012

Operating Profit Growth Rate

29.26% 34.99% 27.70% -41.80%

1.18%


46/51

46

4.23 Asset Utilization Ratio:

Asset utilization ratios measure how efficient Bank using its assets to make money. A Bank's

receivables turnover, which is defined as its credit sales divided by the value of its accounts

receivable from customers, indicates whether a Bank is able to turn the goods and services it

sells into money that is available for other purposes.

Table 23: Asset Util ization Ratio

Year Revenue Average Total Assets Ratio

2008 2301000000 73802000000 3.11%

2009 3363000000 95483000000 3.52%

2010 3696000000 119801500000 3.08%

2011 1328000000 142827000000 0.92%

2012 1439000000 163402500000 0.88%


Graph 23: Asset Utilization Ratio

In 2009 AB Bank has the height asset utilization ratio that is 3.52%. With an asset utilization

ratio of 3.52%, that means Bank earned 0.0352 for each Taka of assets held by the Bank.

Increasing asset utilization means the Bank is being more efficient with each Taka of assets it

has.

0.0000%

1.0000%

2.0000%

3.0000%

4.0000%

2008 2009 2010 2011 2012

Asset Utilization Ratio

2008

2009

2010

2011

2012


47/51

47

Chapter-5: Problems and Suggestion

5.1 Problems:

According to my observation, I have find out some problems in AB Bank Limited. Bank need to

solve those problems, if they want to grow their banking business.

The AB Bank has the limited number of branch over the country as a result every people

cannot able to take the banking facilities of AB Bank.

ATM booth is limited compare to the other Banks that is why their ATM service is

limited.

In 2011 AB Bank faced net loss as a result customer can come back from the bank for

their own safety.

Recently they reduce interest rate on the customer deposit as a result customer can leave

the bank and deposit their money to the other bank. Because of this bank can face the

liquidity crisis.

Small number of promotional activities compare to the other Banks.

Although the foreign exchange business loading day by day there are also some obstacles

around the bank.

The invest little amount in the agricultural sector, but it is not the better decision for our

country.

AB Bank takes 100% margin for the new importer to avoid the risk. Lack of enthusiastic

scheme for exporter & importer.


48/51


49/51

49

5.3 Conclusion:

The commercial banking system dominates Bangladesh's financial sector. There is huge number

of nationalized and foreign bank operating their banking in Bangladesh, The Arab BangladeshBank Limited is promising one among these banks. The growing competition bound AB Bank

not only to compete with the other commercial bank but also with the public banks. For the

future planning and the successful operation in achieving its prime goal in this current

competitive market, this can be helpful in international trade financing that suggested mostly for

the betterment of country. Foreign Exchange Business is the main source of the expansion of our

economy. This is why, the importance of the effective involvement of Bank in our economy in

financing Import, Export & Remittance business is enormous.

After analysis the whole performance and Bank activities, we can see that Banks import and

export volume and the amounts of remittance are increasing year by year. And through this, theComparative profit volume of the bank is also increasing. The increasing demand of the

imported and exported goods and friendly relation with customer by the bank are the main

reasons of this growth.


50/51

50

5.3 References:

To prepare this report I have collected data mainly from annual reports of AB Bank, different

books regarding ratio analysis, the websites of Bangladesh Bank and DSE and others websitesabout ratio analysis. The references are given below:

Source:

Annual Report of AB Bank 2012





Books and Documents:

Peter S. Rose, 2010, Bank Management and Financial Services, McGraw-hill higher,

education, USA

Stanley, B. b., & Geoffrey, A. H. (2008 - 2009). Foundation of Financial Management.

International: McGraw-Hill.

Brigham, E. F., &Gapenski, L. C. (1995). Intermediate Financial Management (Fifth ed.).

International: The Dryden Press.

Madura, J. (2008).Finencial Market and Institution. USA: Thomson South- Western.

MAZER, M., ISLAN (2003), Development and Performance of Domestic and Foreign

Banks in

GCC Countries,Managerial Finance, Vol. 29(2), pp. 42-71.

Financial Sector Review, Volume- III, Number I, December 2007; Published by Bangladesh

Bank

Bangladesh bank,Banking Sector Performance, Regulation and Bank Supervision

B. Nimalathasan 2008, A comparative study of financial performance of banking sector in

Economic and Administrative Series, Nr. 2 146-148

Ahmed Sharmin, and Islam, Md. Ezazul (2006), Interest Rate Spread in Bangladesh; An

Analytical Review.

Banking Performance Indicator of Bangladesh; Published by Bangladesh Bank.


51/51

Websites:

http://www.abbl.com

http://www.investinganswers.com/financial-dictionary/businesses-corporations/return-

assets-roa-1627

http://www.investopedia.com/terms/p/profitabilityratios.asp#axzz2Bji4kVcT

http://en.wikipedia.org/wiki/Net_interest_margin

http://www.bangladesh-bank.org/

http://www.bangladesh-bank.org/pub/publictn.php?cat_id=0&pub_id=2

http://www.bangladesh-bank.org/econdata/index.php
http://www.investinganswers.com/financial-dictionary/businesses-corporations/return-assets-roa-1627http://www.investinganswers.com/financial-dictionary/businesses-corporations/return-assets-roa-1627http://www.investinganswers.com/financial-dictionary/businesses-corporations/return-assets-roa-1627http://www.investinganswers.com/financial-dictionary/businesses-corporations/return-assets-roa-1627http://www.investopedia.com/terms/p/profitabilityratios.asp#axzz2Bji4kVcThttp://www.investopedia.com/terms/p/profitabilityratios.asp#axzz2Bji4kVcThttp://en.wikipedia.org/wiki/Net_interest_marginhttp://en.wikipedia.org/wiki/Net_interest_marginhttp://www.bangladesh-bank.org/http://www.bangladesh-bank.org/http://www.bangladesh-bank.org/pub/publictn.php?cat_id=0&pub_id=2http://www.bangladesh-bank.org/pub/publictn.php?cat_id=0&pub_id=2http://www.bangladesh-bank.org/econdata/index.phphttp://www.bangladesh-bank.org/econdata/index.phphttp://www.bangladesh-bank.org/econdata/index.phphttp://www.bangladesh-bank.org/pub/publictn.php?cat_id=0&pub_id=2http://www.bangladesh-bank.org/http://en.wikipedia.org/wiki/Net_interest_marginhttp://www.investopedia.com/terms/p/profitabilityratios.asp#axzz2Bji4kVcThttp://www.investinganswers.com/financial-dictionary/businesses-corporations/return-assets-roa-1627http://www.investinganswers.com/financial-dictionary/businesses-corporations/return-assets-roa-1627